12. Filing Form 941 or Form 944 What's New 27 - IRS tax forms

Department of the Treasury Internal Revenue Service

Publication 15

Cat. No. 10000W

(Circular E), Employer's Tax Guide

For use in 2023

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Dec 13, 2022

Contents

What's New . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Calendar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 1. Employer Identification Number (EIN) . . . . . . . 11 2. Who Are Employees? . . . . . . . . . . . . . . . . . . . . 11 3. Family Employees . . . . . . . . . . . . . . . . . . . . . . 13 4. Employee's Social Security Number (SSN) . . . 14 5. Wages and Other Compensation . . . . . . . . . . . 15 6. Tips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 7. Supplemental Wages . . . . . . . . . . . . . . . . . . . . 19 8. Payroll Period . . . . . . . . . . . . . . . . . . . . . . . . . . 20 9. Withholding From Employees' Wages . . . . . . . 21 10. Required Notice to Employees About the

Earned Income Credit (EIC) . . . . . . . . . . . . . . 26 11. Depositing Taxes . . . . . . . . . . . . . . . . . . . . . . 26 12. Filing Form 941 or Form 944 . . . . . . . . . . . . . . 32 13. Reporting Adjustments to Form 941 or

Form 944 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 14. Federal Unemployment (FUTA) Tax . . . . . . . . 37 15. Special Rules for Various Types of

Services and Payments . . . . . . . . . . . . . . . . . 40 16. Third-Party Payer Arrangements . . . . . . . . . . 45 How To Get Tax Help . . . . . . . . . . . . . . . . . . . . . . 46 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Future Developments

For the latest information about developments related to Pub. 15, such as legislation enacted after it was published, go to Pub15.

What's New

Social security and Medicare tax for 2023. The rate of social security tax on taxable wages, including qualified sick leave wages and qualified family leave wages paid in 2023 for leave taken after March 31, 2021, and before October 1, 2021, is 6.2% each for the employer and employee or 12.4% for both. Qualified sick leave wages and qualified family leave wages paid in 2023 for leave taken after March 31, 2020, and before April 1, 2021, aren't subject to the employer share of social security tax; therefore,

the tax rate on these wages is 6.2%. The social security wage base limit is $160,200.

The Medicare tax rate is 1.45% each for the employee and employer, unchanged from 2022. There is no wage base limit for Medicare tax.

Social security and Medicare taxes apply to the wages of household workers you pay $2,600 or more in cash wages in 2023. Social security and Medicare taxes apply to election workers who are paid $2,200 or more in cash or an equivalent form of compensation in 2023.

Qualified small business payroll tax credit for increasing research activities. For tax years beginning before January 1, 2023, a qualified small business may elect to claim up to $250,000 of its credit for increasing research activities as a payroll tax credit. The Inflation Reduction Act of 2022 (the IRA) increases the election amount to $500,000 for tax years beginning after December 31, 2022. The payroll tax credit election must be made on or before the due date of the originally filed income tax return (including extensions). The portion of the credit used against payroll taxes is allowed in the first calendar quarter beginning after the date that the qualified small business filed its income tax return. The election and determination of the credit amount that will be used against the employer's payroll taxes are made on Form 6765, Credit for Increasing Research Activities. The amount from Form 6765, line 44, must then be reported on Form 8974, Qualified Small Business Payroll Tax Credit for Increasing Research Activities.

Starting in the first quarter of 2023, the payroll tax credit is first used to reduce the employer share of social security tax up to $250,000 per quarter and any remaining credit reduces the employer share of Medicare tax for the quarter. Any remaining credit, after reducing the employer share of social security tax and the employer share of Medicare tax, is then carried forward to the next quarter. Form 8974 is used to determine the amount of the credit that can be used in the current quarter. The amount from Form 8974, line 12, or, if applicable, line 17, is reported on Form 941 or Form 944. For more information about the payroll tax credit, see ResearchPayrollTC. Also see the line 16 instructions in the Instructions for Form 941 (line 13 instructions in the Instructions for Form 944) for information on reducing your record of tax liability for this credit.

Forms 941-SS and 941-PR discontinued after 2023. Form 941-SS, Employer's QUARTERLY Federal Tax Return--American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands, and Form 941-PR, Planilla para la Declaraci?n Federal TRIMESTRAL del Patrono, will no longer be available after the fourth quarter of 2023. Instead, employers in the U.S. territories will file Form 941, Employer's QUARTERLY Federal Tax Return, or, if you prefer your form and instructions in Spanish, you can file new Form 941 (sp), Declaraci?n del Impuesto Federal TRIMESTRAL del Empleador.

Pubs. 51, 80, and 179 discontinued after 2023. Pub. 51, Agricultural Employer's Tax Guide; Pub. 80, Federal Tax Guide for Employers in the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern

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Mariana Islands; and Pub. 179, Gu?a Contributiva Federal para Patronos Puertorrique?os, will no longer be available after 2023. Instead, information specific to agricultural employers and employers in the U.S. territories will be included in Pub. 15 beginning with the Pub. 15 for use in 2024 (published December 2023). Beginning in 2024, there will be a new Pub. 15 (sp) that is a Spanish-language version of Pub. 15.

Reminders

The COVID-19 related credit for qualified sick and family leave wages is limited to leave taken after March 31, 2020, and before October 1, 2021. Generally, the credit for qualified sick and family leave wages as enacted under the Families First Coronavirus Response Act (FFCRA) and amended and extended by the COVID-related Tax Relief Act of 2020 for leave taken after March 31, 2020, and before April 1, 2021, and the credit for qualified sick and family leave wages under sections 3131, 3132, and 3133 of the Internal Revenue Code, as enacted under the American Rescue Plan Act of 2021 (the ARP), for leave taken after March 31, 2021, and before October 1, 2021, have expired. However, employers that pay qualified sick and family leave wages in 2023 for leave taken after March 31, 2020, and before October 1, 2021, are eligible to claim a credit for qualified sick and family leave wages in 2023. See the March 2023 revision of the Instructions for Form 941 or the 2023 Instructions for Form 944 for more information.

Disaster tax relief. Disaster tax relief is available for those impacted by disasters. For more information about disaster relief, go to DisasterTaxRelief.

Payroll tax credit for certain tax-exempt organizations affected by qualified disasters. Section 303(d) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 allows for a payroll tax credit for certain tax-exempt organizations affected by certain qualified disasters not related to COVID-19. This credit is claimed on Form 5884-D (not on Form 941 and Form 944). Form 5884-D is filed after the Form 941 for the quarter or Form 944 for the year for which the credit is being claimed has been filed. For more information about this credit, go to Form5884D.

2023 withholding tables. The Percentage Method and Wage Bracket Method withholding tables, the employer instructions on how to figure employee withholding, and the amount to add to a nonresident alien employee's wages for figuring income tax withholding are included in Pub. 15-T, Federal Income Tax Withholding Methods, available at Pub15T.

Moving expense reimbursement. P.L. 115-97 suspends the exclusion for qualified moving expense reimbursements from your employee's income for tax years beginning after 2017 and before 2026. However, the exclusion is still available in the case of a member of the U.S. Armed Forces on active duty who moves because of a permanent change of station due to a military order. The exclusion applies only to reimbursement of moving

Publication 15 (2023)

expenses that the member could deduct if they had paid or incurred them without reimbursement. See Moving Expenses in Pub. 3, Armed Forces' Tax Guide, for the definition of what constitutes a permanent change of station and to learn which moving expenses are deductible.

Withholding on supplemental wages. P.L. 115-97 lowered the withholding rates on supplemental wages for tax years beginning after 2017 and before 2026. See section 7 for the withholding rates.

Backup withholding. P.L. 115-97 lowered the backup withholding rate to 24% for tax years beginning after 2017 and before 2026. For more information on backup withholding, see Backup withholding, later.

Certification program for professional employer organizations (PEOs). The Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 required the IRS to establish a voluntary certification program for PEOs. PEOs handle various payroll administration and tax reporting responsibilities for their business clients and are typically paid a fee based on payroll costs. To become and remain certified under the certification program, certified professional employer organizations (CPEOs) must meet various requirements described in sections 3511 and 7705 and related published guidance. Certification as a CPEO may affect the employment tax liabilities of both the CPEO and its customers. A CPEO is generally treated for employment tax purposes as the employer of any individual who performs services for a customer of the CPEO and is covered by a contract described in section 7705(e)(2) between the CPEO and the customer (CPEO contract), but only for wages and other compensation paid to the individual by the CPEO. To become a CPEO, the organization must apply through the IRS Online Registration System. For more information or to apply to become a CPEO, go to CPEO. Also see Revenue Procedure 2017-14, 2017-3 I.R.B. 426, available at irb/ 2017-03_IRB#RP-2017-14.

Outsourcing payroll duties. Generally, as an employer, you're responsible to ensure that tax returns are filed and deposits and payments are made, even if you contract with a third party to perform these acts. You remain responsible if the third party fails to perform any required action. Before you choose to outsource any of your payroll and related tax duties (that is, withholding, reporting, and paying over social security, Medicare, FUTA, and income taxes) to a third-party payer, such as a payroll service provider or reporting agent, go to OutsourcingPayrollDuties for helpful information on this topic. If a CPEO pays wages and other compensation to an individual performing services for you, and the services are covered by a contract described in section 7705(e)(2) between you and the CPEO (CPEO contract), then the CPEO is generally treated as the employer, but only for wages and other compensation paid to the individual by the CPEO. However, with respect to certain employees covered by a CPEO contract, you may also be treated as an employer of the employees and, consequently, may also be liable for federal employment taxes imposed on wages and other compensation paid by the CPEO to such employees. For more information on the different types of third-party payer arrangements, see section 16.

Publication 15 (2023)

Aggregate Form 941 filers. Approved section 3504

agents and CPEOs must complete Schedule R (Form

941), Allocation Schedule for Aggregate Form 941 Filers,

when filing an aggregate Form 941. Aggregate Forms 941

are filed by agents approved by the IRS under section

3504 of the Internal Revenue Code. To request approval

to act as an agent for an employer, the agent files Form

2678 with the IRS unless you're a state or local govern-

ment agency acting as an agent under the special proce-

dures provided in Revenue Procedure 2013-39, 2013-52

I.R.B.

830,

available

at

irb/

2013-52_IRB#RP-2013-39. Aggregate Forms 941 are

also filed by CPEOs approved by the IRS under section

7705. To become a CPEO, the organization must apply

through the IRS Online Registration System at

CPEO. CPEOs file Form 8973, Certified Professional Em-

ployer Organization/Customer Reporting Agreement, to

notify the IRS that they've started or ended a service con-

tract with a client or customer. CPEOs must generally file

Form 941 and Schedule R (Form 941) electronically. For

more information about a CPEO's requirement to file elec-

tronically, see Revenue Procedure 2017-14, 2017-3 I.R.B.

426, available at irb/2017-03_IRB#RP-2017-14.

Other third-party payers that file aggregate Forms 941,

such as non-certified PEOs, must complete and file

Schedule R (Form 941) if they have clients that are claim-

ing any employment tax credit (for example, the qualified

small business payroll tax credit for increasing research

activities).

Aggregate Form 940 filers. Approved section 3504 agents and CPEOs must complete Schedule R (Form 940), Allocation Schedule for Aggregate Form 940 Filers, when filing an aggregate Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. Aggregate Forms 940 can be filed by agents acting on behalf of home care service recipients who receive home care services through a program administered by a federal, state, or local government. To request approval to act as an agent on behalf of home care service recipients, the agent files Form 2678 with the IRS unless you're a state or local government agency acting as an agent under the special procedures provided in Revenue Procedure 2013-39. Aggregate Forms 940 are also filed by CPEOs approved by the IRS under section 7705. CPEOs file Form 8973 to notify the IRS that they've started or ended a service contract with a client or customer. CPEOs must generally file Form 940 and Schedule R (Form 940) electronically. For more information about a CPEO's requirement to file electronically, see Revenue Procedure 2017-14.

Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. Qualified tax-exempt organizations that hire eligible unemployed veterans may be able to claim the work opportunity tax credit against their payroll tax liability using Form 5884-C. For more information, go to WOTC.

Medicaid waiver payments. Notice 2014-7 provides that certain Medicaid waiver payments are excludable from income for federal income tax purposes. See Notice 2014-7, 2014-4 I.R.B. 445, available at irb/

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2014-04_IRB#NOT-2014-7. For more information, including questions and answers related to Notice 2014-7, go to MedicaidWaiverPayments.

No federal income tax withholding on disability payments for injuries incurred as a direct result of a terrorist attack directed against the United States. Disability payments for injuries incurred as a direct result of a terrorist attack directed against the United States (or its allies) aren't included in income. Because federal income tax withholding is only required when a payment is includible in income, no federal income tax should be withheld from these payments. See Pub. 907, Tax Highlights for Persons With Disabilities, and Pub. 3920, Tax Relief for Victims of Terrorist Attacks.

Voluntary withholding on dividends and other distributions by an Alaska Native Corporation (ANC). A shareholder of an ANC may request voluntary income tax withholding on dividends and other distributions paid by an ANC. A shareholder may request voluntary withholding by giving the ANC a completed Form W-4V. For more information, see Notice 2013-77, 2013-50 I.R.B. 632, available at irb/2013-50_IRB#NOT-2013-77.

Definition of marriage. A marriage of two individuals is recognized for federal tax purposes if the marriage is recognized by the state, possession, or territory of the United States in which the marriage is entered into, regardless of legal residence. Two individuals who enter into a relationship that is denominated as marriage under the laws of a foreign jurisdiction are recognized as married for federal tax purposes if the relationship would be recognized as marriage under the laws of at least one state, possession, or territory of the United States, regardless of legal residence. Individuals who have entered into a registered domestic partnership, civil union, or other similar relationship that isn't denominated as a marriage under the law of the state, possession, or territory of the United States where such relationship was entered into aren't lawfully married for federal tax purposes, regardless of legal residence.

Severance payments. Severance payments are wages subject to social security and Medicare taxes, income tax withholding, and FUTA tax.

You must receive written notice from the IRS to file Form 944. If you've been filing Forms 941 (or Forms 941-SS or Formularios 941-PR), and believe your employment taxes for the calendar year will be $1,000 or less, and you would like to file Form 944 instead of Forms 941, you must contact the IRS during the first calendar quarter of the tax year to request to file Form 944. You must receive written notice from the IRS to file Form 944 instead of Forms 941 before you may file this form. For more information on requesting to file Form 944, including the methods and deadlines for making a request, see the Instructions for Form 944.

Employers can request to file Forms 941 instead of Form 944. If you received notice from the IRS to file Form 944 but would like to file Forms 941 instead, you must contact the IRS during the first calendar quarter of the tax year to request to file Forms 941. You must receive written notice from the IRS to file Forms 941 instead of Form 944 before you may file these forms. For more

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information on requesting to file Forms 941, including the methods and deadlines for making a request, see the Instructions for Form 944.

Correcting Form 941 or 944. If you discover an error on a previously filed Form 941, make the correction using Form 941-X. If you discover an error on a previously filed Form 944, make the correction using Form 944-X. Forms 941-X and 944-X are filed separately from Forms 941 and 944. Forms 941-X and 944-X are used by employers to claim refunds or abatements of employment taxes, rather than Form 843. See section 13 for more information.

Zero wage return. If you haven't filed a "final" Form 940 and "final" Form 941 or 944, or aren't a "seasonal" employer (Form 941 only), you must continue to file a Form 940 and Forms 941 or Form 944, even for periods during which you paid no wages. The IRS encourages you to file your "zero wage" Form 940 and Form 941 or 944 electronically. Go to EmploymentEfile for more information on electronic filing.

Federal tax deposits must be made by electronic funds transfer (EFT). You must use EFT to make all federal tax deposits. Generally, an EFT is made using the Electronic Federal Tax Payment System (EFTPS). If you don't want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. EFTPS is a free service provided by the Department of the Treasury. Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee.

For more information on making federal tax deposits, see How To Deposit in section 11. To get more information about EFTPS or to enroll in EFTPS, go to or call 800-555-4477. To contact EFTPS using Telecommunications Relay Services (TRS) for people who are deaf, hard of hearing, or have a speech disability, dial 711 and then provide the TRS assistant the 800-555-4477 number above or 800-733-4829. Additional information about EFTPS is also available in Pub. 966.

Pub. 5146 explains employment tax examinations and appeal rights. Pub. 5146 provides employers with information on how the IRS selects employment tax returns to be examined, what happens during an exam, and what options an employer has in responding to the results of an exam, including how to appeal the results. Pub. 5146 also includes information on worker classification issues and tip exams.

Electronic Filing and Payment

Businesses can enjoy the benefits of filing and paying their federal taxes electronically. Whether you rely on a tax professional or handle your own taxes, the IRS offers you convenient programs to make filing and payment easier.

Publication 15 (2023)

Spend less time worrying about taxes and more time running your business. Use e-file and EFTPS to your benefit.

? For e-file, go to EmploymentEfile for

additional information. A fee may be charged to file electronically.

? For EFTPS, go to or call EFTPS Customer

Service at 800-555-4477. To contact EFTPS using TRS for people who are deaf, hard of hearing, or have a speech disability, dial 711 and then provide the TRS assistant the 800-555-4477 number above or 800-733-4829.

? For electronic filing of Forms W-2, Wage and Tax

Statement, go to employer. You may be required to file Forms W-2 electronically. For details, see the General Instructions for Forms W-2 and W-3.

If you're filing your tax return or paying your fed-

! eral taxes electronically, a valid employer identifi-

CAUTION cation number (EIN) is required at the time the return is filed or the payment is made. If a valid EIN isn't provided, the return or payment won't be processed. This may result in penalties. See section 1 for information about applying for an EIN.

Electronic funds withdrawal (EFW). If you file your employment tax return electronically, you can e-file and use EFW to pay the balance due in a single step using tax preparation software or through a tax professional. However, don't use EFW to make federal tax deposits. For more information on paying your taxes using EFW, go to EFW.

Credit or debit card payments. You can pay the balance due shown on your employment tax return by credit or debit card. Your payment will be processed by a payment processor who will charge a processing fee. Don't use a credit or debit card to make federal tax deposits. For more information on paying your taxes with a credit or debit card, go to PayByCard.

Online payment agreement. You may be eligible to apply for an installment agreement online if you can't pay the full amount of tax you owe when you file your employment tax return. For more information, see the instructions for your employment tax return or go to OPA.

Forms in Spanish

You can provide Formulario W-4(SP), Certificado de Retenciones del Empleado, in place of Form W-4, Employee's Withholding Certificate, to your Spanish-speaking employees. For more information, see Pub. 17(SP), El Impuesto Federal sobre los Ingresos (Para Personas F?sicas). For nonemployees, such as independent contractors, Formulario W-9(SP), Solicitud y Certificaci?n del N?mero de Identificaci?n del Contribuyente, may be used in place of Form W-9, Request for Taxpayer Identification Number and Certification.

Publication 15 (2023)

Hiring New Employees

Eligibility for employment. You must verify that each new employee is legally eligible to work in the United States. This includes completing the U.S. Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. You can get Form I-9 at Forms. For more information, go to the USCIS website at I-9-Central, or call 800-375-5283 or 800-767-1833 (TTY).

You may use the Social Security Number Verification Service (SSNVS) at employer/ssnv.htm to verify that an employee name matches an SSN. A person may have a valid SSN but not be authorized to work in the United States. You may use E-Verify at E- to confirm the employment eligibility of newly hired employees.

New hire reporting. You're required to report any new employee to a designated state new hire registry. A new employee is an employee who hasn't previously been employed by you or was previously employed by you but has been separated from such prior employment for at least 60 consecutive days.

Many states accept a copy of Form W-4 with employer information added. Go to the Office of Child Support Enforcement website at acf.programs/css/ employers for more information.

W-4 request. Ask each new employee to complete the 2023 Form W-4. See section 9.

Name and social security number (SSN). Record each new employee's name and SSN from their social security card. Any employee without a social security card should apply for one. See section 4.

Information Returns

You must file Forms W-2 to report wages paid to employees. You may also be required to file information returns to report certain types of payments made during the year. For example, you must file Form 1099-NEC, Nonemployee Compensation, to report payments of $600 or more to persons not treated as employees (for example, independent contractors) for services performed for your trade or business. For details about filing Forms 1099 and for information about required electronic filing, see the General Instructions for Certain Information Returns for general information, and the separate, specific instructions for each information return you file (for example, the Instructions for Forms 1099-MISC and 1099-NEC). Generally, don't use Forms 1099 to report wages and other compensation you paid to employees; report these on Form W-2. See the General Instructions for Forms W-2 and W-3 for details about filing Form W-2 and for information about required electronic filing.

Technical Services Operation (TSO). The IRS operates the TSO to answer questions about reporting on Forms W-2, W-3, and 1099, and other information returns. If you have questions related to reporting on information returns, call 866-455-7438 (toll free) or 304-263-8700 (toll

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Employer Responsibilities

The following list provides a brief summary of your basic responsibilities. Because the individual circumstances for each employer can vary greatly, responsibilities for withholding, depositing, and reporting employment taxes can differ. Each item in this list has a page reference to a more detailed discussion in this publication.

New Employees: Verify work eligibility of new employees . . . . . . . Record employees' names and SSNs from social security cards . . . . . . . . . . . . . . . . . . . . Ask employees for Form W-4 . . . . . . . . . . . . . .

Each Payday: Withhold federal income tax based on each employee's Form W-4 . . . . . . . . . . . . . . . . . . . Withhold employee's share of social security and Medicare taxes . . . . . . . . . . . . . . . . . . . . Deposit: ? Withheld income tax ? Withheld and employer social security taxes ? Withheld and employer Medicare taxes . . . . . Note: Due date of deposit generally depends on your deposit schedule (monthly or semiweekly).

Quarterly (By April 30, July 31, October 31, and January 31):

Deposit FUTA tax if undeposited amount is over $500 . . . . . . . . . . . . . . . . . . . . . . . . . . File Form 941 (pay tax with return if not required to deposit) . . . . . . . . . . . . . . . . . . . . .

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21 24

26

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call). The center can also be reached by email at mccirp@. Don't include taxpayer identification numbers (TINs) or attachments in email because email isn't secure.

Federal Income Tax

Withholding

Withhold federal income tax from each wage payment or supplemental unemployment compensation plan benefit payment according to the employee's Form W-4 and the correct withholding table in Pub. 15-T. If you're paying supplemental wages to an employee, see section 7. If you have nonresident alien employees, see Withholding income taxes on the wages of nonresident alien employees in section 9.

See section 8 of Pub. 15-A, Employer's Supplemental Tax Guide, for information about withholding on pensions (including distributions from tax-favored retirement plans), annuities, and individual retirement arrangements (IRAs).

Nonpayroll Income Tax Withholding

Nonpayroll federal income tax withholding (reported on Forms 1099 and Form W-2G, Certain Gambling

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Annually (see Calendar for due dates):

Page

File Form 944 if required (pay tax with return if

not required to deposit) . . . . . . . . . . . . . . . . . . . . . 32

Remind employees to submit a new Form W-4

if they need to change their withholding . . . . . . . . . . 21

Ask for a new Form W-4 from employees

claiming exemption from income tax

withholding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Reconcile Forms 941 (or Form 944) with Forms

W-2 and W-3 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

34

Furnish each employee a Form W-2 . . . . . . . . . . . .

9

File Copy A of Forms W-2 and the transmittal

Form W-3 with the SSA . . . . . . . . . . . . . . . . . . . . .

9

Furnish each other payee a Form 1099 (for example,

Form 1099-NEC) . . . . . . . . . . . . . . . . . . . . . . . . .

9

File Forms 1099 and the transmittal Form

1096 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

File Form 940 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

File Form 945 for any nonpayroll income tax

withholding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

Winnings) must be reported on Form 945, Annual Return of Withheld Federal Income Tax. Separate deposits are required for payroll (Form 941 or Form 944) and nonpayroll (Form 945) withholding. Nonpayroll items include the following.

? Pensions (including distributions from tax-favored

retirement plans, for example, section 401(k), section 403(b), and governmental section 457(b) plans), annuities, and IRA distributions.

? Military retirement.

? Gambling winnings.

? Indian gaming profits.

? Certain government payments on which the recipient

elected voluntary income tax withholding.

? Dividends and other distributions by an ANC on which

the recipient elected voluntary income tax withholding.

? Payments subject to backup withholding.

For details on depositing and reporting nonpayroll income tax withholding, see the Instructions for Form 945.

Distributions from nonqualified pension plans and deferred compensation plans. Because distributions to participants from some nonqualified pension plans and deferred compensation plans (including section 457(b) plans of tax-exempt organizations) are treated as wages and are reported on Form W-2, income tax withheld must be reported on Form 941 or Form 944, not on Form 945. However, distributions from such plans to a beneficiary or

Publication 15 (2023)

estate of a deceased employee aren't wages and are reported on Forms 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.; income tax withheld must be reported on Form 945.

Backup withholding. You must generally withhold 24% of certain taxable payments if the payee fails to furnish you with their correct TIN. This withholding is referred to as "backup withholding."

Payments subject to backup withholding include interest, dividends, patronage dividends, rents, royalties, commissions, nonemployee compensation, payments made in settlement of payment card or third-party network transactions, and certain other payments you make in the course of your trade or business. In addition, transactions by brokers and barter exchanges and certain payments made by fishing boat operators are subject to backup withholding.

Backup withholding doesn't apply to wages, pen-

! sions, annuities, IRAs (including simplified em-

CAUTION ployee pension (SEP) and SIMPLE retirement plans), section 404(k) distributions from an employee stock ownership plan (ESOP), medical savings accounts (MSAs), health savings accounts (HSAs), long-term-care benefits, or real estate transactions.

You can use Form W-9 or Formulario W-9(SP) to request payees to furnish a TIN. Form W-9 or Formulario W-9(SP) must be used when payees must certify that the number furnished is correct, or when payees must certify that they're not subject to backup withholding or are exempt from backup withholding. The Instructions for the Requester of Form W-9 or Formulario W-9(SP) includes a list of types of payees who are exempt from backup withholding. For more information, see Pub. 1281, Backup Withholding for Missing and Incorrect Name/TIN(s).

and weekly rate of payments you or third-party payers made to them.

? Copies of employees' and recipients' income tax

withholding certificates (Forms W-4, W-4P, W-4(SP), W-4S, and W-4V).

? Dates and amounts of tax deposits you made and

acknowledgment numbers for deposits made by EFTPS.

? Copies of returns filed and confirmation numbers.

? Records of fringe benefits and expense

reimbursements provided to your employees, including substantiation.

? Documentation to substantiate any credits claimed.

Records related to qualified sick leave wages and qualified family leave wages for leave taken after March 31, 2021, and before October 1, 2021, and records related to qualified wages for the employee retention credit paid after June 30, 2021, should be kept for at least 6 years. For more information on substantiation requirements, go to PLC and ERC.

? Documentation to substantiate the amount of any

employer or employee share of social security tax that you deferred and paid for 2020.

Change of Business Name

Notify the IRS immediately if you change your business name. Write to the IRS office where you file your returns, using the Without a payment address provided in the instructions for your employment tax return, to notify the IRS of any business name change. See Pub. 1635 to see if you need to apply for a new EIN.

Recordkeeping

Keep all records of employment taxes for at least 4 years. These should be available for IRS review. Your records should include the following information.

? Your EIN.

? Amounts and dates of all wage, annuity, and pension

payments.

? Amounts of tips reported to you by your employees.

? Records of allocated tips.

? The fair market value of in-kind wages paid.

? Names, addresses, SSNs, and occupations of

employees and recipients.

? Any employee copies of Forms W-2 and W-2c

returned to you as undeliverable.

? Dates of employment for each employee.

? Periods for which employees and recipients were paid

while absent due to sickness or injury and the amount

Change of Business Address or Responsible Party

Notify the IRS immediately if you change your business address or responsible party. Complete and mail Form 8822-B to notify the IRS of a business address or responsible party change. For a definition of "responsible party," see the Instructions for Form SS-4.

Filing Addresses

Generally, your filing address for Form 940, 941, 943, 944, 945, or CT-1 depends on the location of your residence or principal place of business and whether or not you're including a payment with your return. There are separate filing addresses for these returns if you're a tax-exempt organization or government entity. See the separate instructions for Form 940, 941, 943, 944, 945, or CT-1 for the filing addresses.

Publication 15 (2023)

Page 7

Private Delivery Services

You can use certain private delivery services (PDSs) designated by the IRS to meet the "timely mailing as timely filing" rule for tax returns. Go to PDS for the current list of PDSs.

The PDS can tell you how to get written proof of the mailing date.

For the IRS mailing address to use if you're using a PDS, go to PDSstreetAddresses. Select the mailing address listed on the webpage that is in the same state as the address to which you would mail returns filed without a payment, as shown in the instructions for your employment tax return.

PDSs can't deliver items to P.O. boxes. You must

! use the U.S. Postal Service to mail any item to an

CAUTION IRS P.O. box address.

Dishonored Payments

Any form of payment that is dishonored and returned from a financial institution is subject to a penalty. The penalty is $25 or 2% of the payment, whichever is more. However, the penalty on dishonored payments of $24.99 or less is an amount equal to the payment. For example, a dishonored payment of $18 is charged a penalty of $18.

E-News for Payroll

Professionals

The IRS has a subscription-based email service for payroll professionals. Subscribers will receive periodic updates from the IRS. The updates may include information regarding recent legislative changes affecting federal payroll reporting, IRS news releases and special announcements pertaining to the payroll industry, new employment tax procedures, and other information specifically affecting federal payroll tax returns. To subscribe, go to ENewsPayroll.

Telephone Help

Tax questions. You can call the IRS Business and Specialty Tax Line with your employment tax questions at 800-829-4933.

Help for people with disabilities. You may call 800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability) with any employment tax questions. You may also use this number for assistance with unresolved tax problems.

Additional

information. Go

to



EmploymentTaxes for additional employment tax informa-

tion. For information about employer responsibilities under

the Affordable Care Act, go to ACA. For

Page 8

information about COVID-19 tax relief, go to Coronavirus.

Ordering Employer Tax Forms,

Instructions, and Publications

You can view, download, or print most of the forms, instructions, and publications you may need at Forms. Otherwise, you can go to OrderForms to place an order and have them mailed to you. The IRS will process your order as soon as possible. Don't resubmit requests you've already sent us. You can get forms, instructions, and publications faster online.

Instead of ordering paper Forms W-2 and W-3, consider filing them electronically using the SSA's free e-file service. Go to the SSA's Employer W-2 Filing Instructions & Information webpage at employer to register for Business Services Online. You'll be able to create Forms W-2 online and submit them to the SSA by typing your wage information into easy-to-use fill-in fields. In addition, you can print out completed copies of Forms W-2 to file with state or local governments, distribute to your employees, and keep for your records. Form W-3 will be created for you based on your Forms W-2.

Photographs of Missing Children

The IRS is a proud partner with the National Center for

Missing & Exploited Children? (NCMEC). Photographs of

missing children selected by the Center may appear in

this publication on pages that would otherwise be blank.

You can help bring these children home by looking at the

photographs

and

calling

1-800-THE-LOST

(1-800-843-5678) if you recognize a child.

Calendar

The following is a list of important dates and responsibilities. The dates listed here haven't been adjusted for Saturdays, Sundays, and legal holidays (see the TIP next). Pub. 509, Tax Calendars (for use in 2023), adjusts the dates for Saturdays, Sundays, and legal holidays. See section 11 for information about depositing taxes reported on Forms 941, 944, and 945. See section 14 for information about depositing FUTA tax. Due dates for forms required for health coverage reporting aren't listed here. For these dates, see Pub. 509.

If any date shown next for filing a return, furnish-

TIP ing a form, or depositing taxes falls on a Saturday,

Sunday, or legal holiday, the due date is the next business day. The term "legal holiday" means any legal holiday in the District of Columbia. A statewide legal holiday delays a filing due date only if the IRS office where you're required to file is located in that state. However, a

Publication 15 (2023)

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